Altimmune Inc. (NASDAQ:ALT) shares dropped 6.2% in premarket trading on Wednesday after the biopharmaceutical company unveiled plans for a $75 million registered direct equity offering.
The late-stage clinical developer said it will issue 17,045,454 shares of common stock, or pre-funded warrants in place of shares, to a new institutional investor. The transaction is expected to close on or around January 29, 2026, subject to standard closing conditions.
Altimmune said the proceeds will be used primarily to support preparations for its upcoming Phase 3 trial of pemvidutide in metabolic dysfunction–associated steatohepatitis (MASH), as well as for general corporate purposes and working capital needs.
Pemvidutide is a dual glucagon/GLP-1 receptor agonist that recently received Breakthrough Therapy Designation from the U.S. Food and Drug Administration, following positive topline results from a 48-week Phase 2b study. The company is positioning the candidate as a potentially differentiated treatment option in the MASH space.
Titan Partners, a division of American Capital Partners, is acting as the sole placement agent for the offering.
The decline in Altimmune’s share price reflects a common market response to dilution from new equity issuance, even as the company advances its clinical development pipeline.